Which of the Following Best Illustrates the Fallacy of Composition

question 193

Multiple Choice

Which of the following best illustrates the fallacy of composition?

• A) If Mr. Smith had more money, he could buy more scarce goods; if the Adams family had more money, it could buy additional goods.
• B) If Ms. Spann had more money, she could buy more scarce goods; if the nation had more money, everyone could buy more scarce goods.
• C) If other variables are not held constant, economists may not observe the relationship between price and quantity demanded that is expected.
• D) Aggregate consumption may not behave in the same manner as the consumption of a particular individual.

---

Definitions:

Data Warehouse

A centralized repository for storing, managing, and retrieving large volumes of data from different sources for analysis and reporting.

Internal Data Sources

Information collected from within an organization, used for decision making and strategic planning, such as sales records or financial data.

Dependent Variable

A variable whose value is influenced or determined by one or more independent variables in an experiment or analysis.

Independent Variable

A variable in an experiment or model that is manipulated or changed to observe its effects on the dependent variable.